Foodpanda strike shows new law on gig economy needed, says Syed Saddiq

SM Amin SM Amin Updated 4 years ago · Published on 2 Oct 2019 10:48AM · 5 Comments

Delivery riders protesting outside of Foodpanda's headquarters in Cheras, Kuala Lumpur yesterday. They say the company's new payment scheme will slash their incomes in half. – The Malaysian Insight pic by Afif Abd Halim, October 2, 2019.

NEW laws are needed to protect the welfare of workers in the gig economy, Youth and Sports Minister Syed Saddiq Syed Abdul Rahman said after meeting about 100 Foodpanda delivery riders last night.

The group of riders from the online food delivery service went to the minister’s house last night to highlight their grouses about Foodpanda’s new payment system, which removes an hourly wage and pays them by delivery.

“I find that after hearing the riders tonight, there are some contradictions with what the Foodpanda management has said.

“Foodpanda has claimed that their riders would earn more through the new scheme, but that is not what the riders are saying,” Syed Saddiq said.

He said he will suggest to the cabinet a new law to protect the welfare of workers in e-hailing companies.

“When a company earns profits in the millions, it should not forget its workers. We must ensure that there are standards on this and will work with the cabinet.

“The Human Resources Ministry will lead on this issue but we need to have comprehensive laws to care for workers in the gig economy,” Syed Saddiq said.

The Foodpanda riders went to his home after the minister posted on Twitter the night before that he was willing to meet them and take their grouses to the cabinet.

Those who showed up were mostly riders working in the Klang Valley, although the new Foodpanda scheme only applies to those working outside the Klang Valley. There were a few from Penang and Johor as well.

They were also joined by a few Grabfood delivery riders  who wanted to raise concerns about issues involving the e-hailing service, Grab.

On Monday, Foodpanda riders in a few states went on strike to protest the new payment scheme which began that day.

About 130 of them in the Klang Valley also held a brief strike and demonstrated outside the Foodpanda office in Kuala Lumpur to show solidarity with riders affected by the system.

The new system removes the riders’ RM4 hourly wage and replaces it with fees per delivery of between RM4.50 to RM7, which is RM3 to RM5 more per delivery than before. 

Riders also get a RM100 incentive if they work 60 hours per week and an extra RM1 per order for all orders between 11pm and 9am daily.

Foodpanda rider Mohamad Faiz Mohd Padzil, 20 said he wanted the company to revert to the previous payment scheme that paid riders a fee for each hour they worked.

“The fee for every hour worked has been withdrawn. Under this new scheme, our incomes will be half of what we used to earn under the previous system,” Faiz said.

Another rider, who gave his name as Wan Ahmad, said the company does not care for their welfare.

“We have insurance but when an accident happens, we don’t know who to claim from. No one (from the company) steps forward to help us,” he said of instances when fellow-riders had met with accidents.

Grabfood delivery rider Mohd Asror Mohd Azmal also raised the same issue, saying the problems Foodpanda riders were facing now were similar to those who delivered food under the Grab e-hailing app.

“What Foodpanda riders are facing, we have experienced before. We have made many objections but nothing changed. This time, I really hope the minister can help us by bringing this to the cabinet,” he said.

Syed Saddiq later told reporters that he would urge Foodpanda to revert to its previous payment system as a short-term measure.

He said he concurred that based on the new payment system, riders’ income would be slashed by nearly 50%.

“There was not much prior warning given and then we find that the new scheme can reduce their monthly incomes by nearly half. Of course they are angry.

“We need to find a solution and I will be bringing this to the cabinet and the prime minister,” the Muar MP said. – October 2, 2019.

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Comments

  • Why not just all move over to Grab Good, surely Foodpanda will haveaddress your grouses.

    This bullying tactic of going to the Minister's house is unacceptable.

    Posted 4 years ago by CS Lee · Reply

  • This young man is arrogant, doesn't see the need and have the coutersy to consult the HR Miniter before making statements on behalf of the government. He tries hard to portray himself as a hero among the youth but comes across as immature, disrespectful and arrogant. When criticised publicly, he will twist and turn and try to justify his actions which in the first instant was uncalled for. He needs to learn about patience and respect for others including the elders.

    Posted 4 years ago by Panchen Low · Reply

  • When a company earns profits in the millions, it should not forget its workers. We must ensure that there are standards on this and will work with the cabinet."

    Little boy don't understand tech startup, they are burning investor money every month, not make millions.

    The riders could have boycotted and forced FP to the negotiation table, without his interference, the way market economy works, instead, he get to make himself look good for probably similar outcome as a direct negotiation between riders & FP, he took power away from the riders (who don't realize it) and in the process, make himself look ignorant and the country not friendly to investors.

    Posted 4 years ago by A Subscriber · Reply

    • This is the little boy's first job. Obviously promoted way beyond his meager thinking facilities and capabilities. With no experience in anything related to work or business, he makes stupid statements and overstep into his colleague's territory.

      Posted 4 years ago by Yoon Kok · Reply

  • 1. This is for the Human Resources ministry to handle. Please Syed, dont meddle in areas where you dont possess any expertise. A few screw ups from you is enough. Dont complicate matters.
    2. You just stick to sports la.
    3. The riders should take their grouses directly to the Human Resources Minister. They would have special officers and relevant expertise to address and manage the riders concerns.
    This issue is no different from other companies labour practices.
    4. Because you are the blue-eyed boy of the PM doesnt mean you have to run to the cabinet every time there is an issue!
    A good Minister is one who is able to provide amicable resolutions without bothering the cabinet with such matters. And what will the cabinet decide when the matter is raised? It would probably say the HR Ministry to manage the issue and report!
    5. Syed, please focus on sports... and bring value to sports in the country. We are lagging far behind our neighbours when it comes to sports.

    Posted 4 years ago by Kampung Boy · Reply